: A sustainable alternate source of graphite for the Lithium-ion Battery Market

Transcription

1 ASX: KNL FSE: FMK : A sustainable alternate source of graphite for the Lithium-ion Battery Market Benchmark Mineral Intelligence : Graphite & Anode Conference October 2018 Presented by : Christoph Frey

2 DISCLAIMER Securities Disclaimer This presentation is for informational purposes only and does not constitute an offer to sell, or solicit to purchase, any securities. Such offer can be made only through proper subscription documentation and only to investors meeting strict suitability requirements. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. Forward Looking Statements Various statements in this presentation constitute statements relating to intentions, future acts and events. Such statements are generally classified as forward looking statements and involve known and unknown risks, uncertainties and other important factors that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed herein. The Company gives no assurances that the anticipated results, performance or achievements expressed or implied in these forward looking statements will be achieved. The production targets and forecast financial information referred to in this presentation were originally reported to the ASX by the Company on 21 June 2017 and on 5 December All material assumptions underpinning the production targets and forecast financial information reported in those ASX announcements continue to apply and have not materially changed. Competent Persons Information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Andrew Spinks, who is a Member of the Australasian Institute of Mining and Metallurgy included in a list promulgated by the ASX from time to time. Andrew Spinks is a director of Kibaran Resources Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Andrew Spinks consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. Information in this presentation that relates to Mineral Resources is based on information compiled by Mr David Williams, a Competent Person, who is a Member of the Australasian Institute of Mining and Metallurgy. David Williams is employed by CSA Global Pty Ltd, an independent consulting company. Mr Williams has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. David Williams consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. Information in this presentation that relates to Ore Reserves has been compiled by Mr Steve O'Grady, who is a Member of the Australasian Institute of Mining and Metallurgy. Steve O Grady is a full time employee of Intermine Engineering and produced the Mining Reserve estimate based on data and geological information supplied by Mr Williams. Mr O'Grady has sufficient experience which is relevant to the estimation, assessment, evaluation and economic extraction of the Ore Reserve that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Steve O'Grady consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. 2

3 NEW GRAPHITE MINING & MANUFACTURING BUSINESS POISED FOR DEVELOPMENT Shares on issue Key holders Financial Listed 276m F-diluted 279m Colonial 11% Board 10% Value-on-Gr. 4% GR Engineer. 2% A$55m Cash (30/6/18) A$2.8m Scalable mining project for long term supply of graphite products Development ready Epanko Graphite Project Value-add manufacturing of battery (spherical) graphite for lithium-ion batteries Tanzania / Asia / Europe Total pre-tax NPV 10 US$356m (geared, nominal terms) Strong mix of mining, commercial and graphite experience Kibaran Chairman Robert Pett, Managing Director Andrew Spinks and in-country Project Director Grant Pierce OAM established Tanzania s Golden Pride Mine and are recipients of the President s Award in Tanzania for environmental excellence. German-based non-executive director Christoph Frey (ProGraphite) is a globally recognised graphite expert Listed on the Australian and German (Frankfurt) stock exchanges 3

4 MARKET OPPORTUNITY FOR BATTERY GRAPHITE Global expansion of electric vehicle markets forecast to drive a 700% increase in annual natural graphite demand by to over 800,000 tonnes per annum Roskill, UBS Mined natural flake ~55kg graphite per EV 127,000 tonnes EV penetration rates increasing from 2% in 2017 to 25% by 2025 Roskill, UBS Used in 2017 Roskill 4

5 MARKET OPPORTUNITY FOR BATTERY GRAPHITE Accelerating demand for lithium-ion battery storage from the renewable energy industry > US$8 trillion investment in wind and solar to 2050 > US$500 billion in new battery storage capacity by 2050 Mobile solar. powering villages in Mali and Niger Transported in sea containers. set-up in 2 hours 5

6 GRAPHITE BUSINESS SUMMARY Total pre-tax NPV 10 US$356m (geared, nominal terms) Products Status Feasibility study Jun 2017 Bank technical review Aug 2017 Debt financing Feasibility study Dec 2017 Non-HF purification IP developed Pilot plant optimisation completed Pre-production cost US$89m Pilot plant scale-up US$4m 5,000tpa US$25m 20,000tpa US$41m Early Works Construction IRR Payback GR Engineering 13mths 38.9% 3.5yrs 12mths 34.3% 3yrs *Refer ASX Announcements 21 June 2017 and 5 December

7 NATURAL FLAKE GRAPHITE OFFTAKE SUMMARY Battery Markets Traditional Markets 7

8 OPTIMISATION PROGRAM SUCCESSFULLY COMPLETED Pilot plant optimisation in Germany to produce commercial quantities of spherical graphite with financial support from German Government completed Key achievements: Treatment of graphite from Kibaran s Epanko Project in Tanzania, including battery (spherical) graphite and fines from spheronization (by-product) produced up to 99.98% carbon Graphite from 10 other global sources produced up to 99.98% carbon Seven large natural flake graphite samples produced carbon levels above 99.95% A new clean green proprietary processing technology developed under trademark competitive and avoids toxic hydrofluoric acid that is cost Agreement finalised for long-term supply of standard grade graphite (minus 100 mesh at 94% carbon) which will be used as feedstock to support stages 1 and 2 of a stand-alone downstream business 8

9 PURIFICATION RESULTS Focus of feasibility study : Development of a purification method, which is: Ecologically sustainable ( green ) Hydrofluoric acid (HF) free Cost competitive with existing HF supplies Solution: Hydroflouric acid (HF) free purification method, with low energy consumption and low environmental footprint EcoGraf optimised with spherical graphite processed from Kibaran s Epanko deposit EcoGraf tested Other sources of spherical graphite Fines from spheronization (d50 of 5 micron) Large flakes from different sources Graphite from 10 different origins Outstanding Results: very robust method, almost all samples reach carbon content of above 99.95% Typical results from ICP measurement (highly accurate method): ash 0.02% (200 ppm) Element Al Ca Fe Mg Ni S Si Zr [ppm]

10 COMPETITIVE ADAVANTAGE Results support Kibaran s strategy to establish battery graphite processing business with key competitive product advantages: EcoGraf Existing Supply Purification grades >99.98% >99.95% Purification of fines Yes No Excludes toxic hydrofluoric acids Yes No Ethical and environmentally friendly Yes No Samples from pilot work tested by and meets stringent standards of major anode manufacturers technology separates spherical graphite development from timing of Epanko Project and can proceed independently of Tanzanian production Pilot plant scalable from piloting to commercial production to meet market demand Strong interest from Europe and Asia for product supply and codevelopment 10

11 DEVELOPMENT SCHEDULE Phased commercialisation strategy for Phase Battery (Spherical) Graphite Feedstock Stage 1 3,000tpa (unpurified) customer trials and sales 6,000 Stage 2 5,000tpa (purified) 10,000 Stage 3 20,000tpa (purified) 40,000 11

12 NATURAL BATTERY GRAPHITE SUPPLY CHAIN Natural Graphite (Purified Spherical Graphite) Battery Anode Cells (Coated Spherical Graphite) Battery Systems (Integrated Cathode/Anode Cell) Development of European and Asian production hubs to produce battery product 12

13 ESTABLISHING A GLOBAL GRAPHITE SUPPLY NETWORK Awareness from customers is driving demand for environmentally sustainable raw material supply chains EUROPEAN HUB ASIA-PACIFIC HUB 13

14 SUPPORTED BY KEY STAKEHOLDERS Investment and financing Customers Technical expertise 14

15 BOARD AND MANAGEMENT Board and Management Robert Pett (Non-Executive Chairman) Andrew Spinks (Managing Director) Grant Pierce OAM (Executive Director) Christoph Frey (Non-Executive Director) John Conidi (Non-Executive Director) A strong mix of mining, commercial and graphite experience Mineral economist with over 30 years experience developing projects and mines in Australia and Africa. Founding Chairman of Resolute Mining Limited, with a strong track record of board governance and leadership in listed resources and energy companies. Geologist with over 25 years experience. Expertise in exploration, mining and resources management across a range of commodities and geographies. Former resident of Tanzania at the Golden Pride mine. Mining engineer with over 25 years experience, including development of African mines Tulawaka, Golden Pride and Edikan. Order of Australia Medal 2003 for social development in rural Tanzania. German-based graphite industry professional with over 25 years graphite experience in Russia, Europe, Africa and China. Direct experience in both traditional and evolving graphite markets including the production of purified spherical graphite. Certified Practising Accountant with 20 years experience acquiring, developing and managing publicly listed businesses, particularly in the technology sector. Howard Rae (Chief Financial Officer) Marshall Hestelow (Consultant) Nassor Said (Commercial Manager) Chartered Accountant with over 20 years experience across the resources industry in Australia, Asia and Africa, focussing on business development and financing new mining operations. Certified Practising Accountant with over 30 years experience in the resources sector in corporate roles with Resolute Mining Limited in Australia and Africa. Resources and logistics professional with substantial experience in regulatory and commercial operations within Tanzania. 15

16 THANK YOU 16 16